Friday, August 15, 2014

MC2 Post 1891 Coke Buys 16 point 7 percent of Monster

For years now, analysts have suggested that the Coca-Cola Company acquire Monster Beverage, the energy drink company.

Access to the fast-growing market for the highly caffeinated beverages would help Coca-Cola offset the slowing growth of soda sales and connect with a younger generation of consumers, they said. Two years ago, the companies almost struck a deal, but could not agree on terms.

Now, Coca-Cola has finally made its move. On Thursday, it announced that it had acquired a 16.7 percent stake in Monster for $2.15 billion.

The deal unites the biggest soda maker in the world with the largest energy drink brand in the United States.“It’s a positive and smart move by both companies,” said John Sicher, editor of Beverage Digest. “It will strengthen Coke and the Coke system, and the Coke system will strengthen Monster.”

Chipotle (CMG) has been dishing up millions of burritos, with same-store sales soaring 17.3 percent in the second quarter. Such results are an impressive feat in the restaurant business, and the chain says only a small share—2.5 percentage points—came from the much-loathed price hike that started rolling out in late April. (Menu prices went up by 6.5 percent, on average.)

The remaining 14.8 percentage points? Chipotle executives say the spread of pure burrito love increased the chain’s number of transactions.

About Me

I started in computing selling the TRS-80 many years ago in the early 80's and got hooked when I bought my own Coco (Color Computer). I've had a computer ever since.
I write short SF stories and Linux/OpenSource articles. I'm on Twitter as: http://twitter.com/ErnieMLopez/